Malaysia Zakat Smart Contract Architectural Framework Design

Abstract

Malaysia's zakat management system has greatly improved as a consequence of its integration with digital technologies. This technological approach is much more controllable than manual processes. Nonetheless, there still exists the possibility for human interference in the zakat management system to manipulate this technology intentionally for their own interest. To ensure transparency, these shortcomings in zakat management transactions must be corrected from the point of collection to the point of distribution of zakat to eligible asnaf individuals who are qualified to receive zakat under Shariah law, such as fakir, miskin, amil, and mualaf. This limitation may be addressed by employing smart contracts, which are digital ledgers based on blockchain technology. A digital ledger works like a manual ledger, but with a higher degree of security, making any manipulation of zakat management data impossible. This major concern spurred a thorough investigation into the aforementioned issues and public complaints about the present Zakat management system in general. However, the research is restricted to the issues of zakat management in Malaysia. To resolve this issue, an investigation into existing smart contracts proposals and applications used around the world is analyzed to adapt it to suit current and future demands for technology-enhanced zakat management. An architectural framework based on an upgraded smart contracts model is then proposed that may be used to improve Malaysian zakat management systems. This approach is confined to the construction of an architectural design framework, but it also seeks to plan and prepare for future development, which will involve the production of prototypes and proofs of concept for the previously constructed architectural design framework.